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Volkswagen Market Mix

In: Business and Management

Submitted By patrick0709
Words 357
Pages 2
Product & Positioning
Volkswagen offers models such as: Passenger Cars, Luxury Cars, Vans and Buses. Volkswagen has a reputation for producing vehicles with safety and reliability in mind. They are also very concerned with the environment. Despite producing automobiles, Volkswagen also provides the Financial Services including leasing, banking and insurance.
Passenger and Commercial Cars:
Passat, Jetta, Golf (Volkswagen Passenger Cars), SKODA, SEAT
Target: young single professionals between the ages of 18 and 27 married couples with children who value safety retired couples aged 50 and older who have the necessary income saved to travel and enjoy the remainder of the lives
Luxury and Sports Cars
Audi, BENTLY, PORSCHE
Target: smarter people that really enjoy the driving experience
Successful businessman and governor who usually lie in better neighborhoods
Trucks and Buses
SCANIA, MAN
Target: big enterprise and government Public transportation group
Financial Services:
Target: conservative people who paying closer to the total cost of mobility People who decide just to use a car not buy one The car buyers who need financing and insurance

Price
Volkswagen has consistently acted with a premium pricing strategy. Their products typically have a high price, on average 10 percent higher than competitors (reference: consumer report by Volkswagen, 2012); however, the return is more upscale driving and ownership experience.
In recent years, their pricing strategy has decreased to only 5 percent higher (reference: the interview with the PR president). This decrease in price was due in fact to the belief among consumers that Volkswagen passenger cars are too expensive for the quality delivered. Their premium pricing strategy has caused them to lose some market share to competitor brands. This was not a substantial problem in the past, but competitors are increasingly offering better price for their products like some Japanese automakers including Honda and Toyota, so Volkswagen has to adapt in order to keep the market share. Volkswagen has taken this into account and has decided to lower base prices on some of their models to attract more customers. The seventh generation of the Golf launched in 2012 proved the tendency, which was considerably cheaper despite being better equipped (Volkswagen Annual Report, 2012).…...

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